Cash Flow From Reuters Merger Could Boost Thomson Shares

It's a new era at Thomson Corp. (TOC) and the stock price should reflect accelerating free cash flow growth, says RBC Capital Markets analyst Drew
McReynolds.

Most of the good news comes from a merger with Reuters (RTRSY), which is expected to generate at least C$1-billion in cost-savings. Mr. McReynolds says the combination of the two financial news and data powerhouses could generate even greater savings over the next 12 months.

There is also the possibility of generating new revenue at the combined companies, and higher organic growth of up to 8% from the new asset mix that includes operations in emerging markets.